Is the CBI Cracking Down on Builders in Kolkata, Bengaluru & Mumbai?
Click to start listening
Synopsis
In a bold move, the CBI has launched an extensive investigation against builders accused of defrauding homebuyers in Kolkata, Bengaluru, and Mumbai. With six cases filed and searches at 12 locations, this initiative raises critical questions about the accountability of real estate firms and financial institutions in protecting consumer rights.
Key Takeaways
- CBI has filed six cases against builders in Kolkata, Bengaluru, and Mumbai.
- Searches were conducted at 12 locations, uncovering incriminating evidence.
- Supreme Court intervened following complaints from homebuyers.
- The investigation aims to explore collusion between builders and financial institutions.
- Consumer rights in the real estate sector are under renewed scrutiny.
New Delhi, Sep 27 (NationPress) In a significant operation targeting builders implicated in defrauding numerous homebuyers, the Central Bureau of Investigation (CBI) on Saturday initiated six cases against real estate firms in Kolkata, Bengaluru, and Mumbai, along with unidentified officials from financial institutions, following orders from the Supreme Court. Searches were carried out at 12 locations in the three metropolitan areas, during which the agency reported seizing various incriminating documents and several digital electronic evidences.
The investigation is a result of petitions submitted by distressed homebuyers to the Supreme Court, which highlighted extensive fraud by developers and aggressive collection tactics by financial institutions.
The apex court had raised concerns regarding the “unholy nexus” between builders and lenders stemming from the controversial subvention scheme of home loans. In April 2025, it directed the CBI to commence seven preliminary inquiries.
Subsequently, the CBI had already filed 22 FIRs against builders in the National Capital Region (NCR), which are currently under examination.
This latest action follows the conclusion of the seventh inquiry related to projects beyond NCR.
Upon reviewing the CBI’s status report, the Supreme Court instructed the agency to formalize its findings into six distinct cases.
“With the completion of the seventh Preliminary Enquiry targeting various builders outside NCR, the CBI has presented the status report to the Supreme Court. After assessing the submitted report, the Supreme Court mandated the CBI to register six Regular Cases against different builders in Kolkata, Bengaluru, and Mumbai, along with unidentified financial institution officials,” the agency disclosed in its press statement.
“In compliance, the CBI has recorded six cases and is executing searches across twelve locations in Kolkata, Bengaluru, and Mumbai. Searches are still ongoing,” it added.
The six identified entities include: M/s Ithaca Estate Pvt. Ltd, Bengaluru; M/s LGCL Urban Homes (India) LLP, Bengaluru; M/s Ozone Urbana Infra Developers Pvt. Ltd, Bengaluru; M/s Shashwati Realty Pvt. Ltd, Mumbai (with projects in Bengaluru); M/s MKHS Housing LLP, Kolkata; and M/s ACME Realities Pvt. Ltd, Mumbai.
The involvement of the Supreme Court came in response to rising complaints across the nation, where homebuyers were left stranded as developers failed to fulfill their project commitments, while banks persistently demanded EMIs under the subvention model.
The CBI’s expanding investigation now seeks to determine the depth of collusion between real estate companies and financial institutions.
Point of View
I emphasize the importance of transparency and accountability in the real estate sector. The CBI's actions reflect a growing need to protect consumers and ensure that builders adhere to their commitments. This ongoing investigation highlights the necessity of rigorous scrutiny of financial institutions and developers alike, fostering trust in the housing market.
NationPress
14/11/2025
Frequently Asked Questions
What prompted the CBI to act against builders?
The CBI's action was prompted by petitions from homebuyers to the Supreme Court, highlighting large-scale cheating by developers and coercive tactics by financial institutions.
How many locations were searched during the CBI operation?
The CBI conducted searches at 12 locations across Kolkata, Bengaluru, and Mumbai.
What kind of evidence was seized during the searches?
During the searches, various incriminating documents and digital electronic evidences were seized.
Which builders are involved in the CBI's investigation?
The named entities include Ithaca Estate Pvt. Ltd, LGCL Urban Homes (India) LLP, Ozone Urbana Infra Developers Pvt. Ltd, Shashwati Realty Pvt. Ltd, MKHS Housing LLP, and ACME Realities Pvt. Ltd.
What is the Supreme Court's role in this investigation?
The Supreme Court directed the CBI to initiate inquiries into the builders and mandated the registration of six regular cases following the conclusion of preliminary inquiries.
